FX.co ★ Hang Seng Bounces Back at Close

The Hang Seng index rose by 216 points, or 0.9%, closing at 23,905 on Monday, after a lackluster start earlier in the day. This upward movement was influenced by significant gains in U.S. futures, spurred by President Trump's suggestion of potential "flexibility" in his reciprocal tariff plan before the April 2 deadline. Last week, Federal Reserve Chair Jerome Powell allayed investor concerns by minimizing the long-term effects of the tariffs. Investors also responded positively to Premier Li Qiang's renewed commitment to implementing more proactive macroeconomic policies. Additionally, the People's Bank of China reaffirmed its intention to reduce banks' required reserve ratios and interest rates at a suitable time later this year to bolster economic recovery. Moreover, Morgan Stanley increased its 2025 GDP growth forecast for China by 50 basis points to 4.5%, attributing the revision to government stimulus bolstering local governments and consumer spending. Most sectors saw gains, with technology, consumer, and financial stocks leading the way. Notable performers included Zhejiang Leapmotor, which rose by 4.8%, Xiaomi Corporation by 3.9%, CK Hutchison Holdings by 3.8%, and Semiconductor Manufacturing by 2.9%.